A Ltd., a manufacturing company with total assets of about $7 million and 500,000 shares outstanding, is

Question:

A Ltd., a manufacturing company with total assets of about $7 million and 500,000 shares outstanding, is situated just outside a medium-sized Canadian city. In early 19X9, the local newspaper published a series of articles charging that A Ltd. was polluting a river that runs through the city and that the company had irresponsibly paid annual dividends instead of providing funds for the restoration of the environment. CA has been A Ltd.'s external auditor for several years. Suppose that neither the newspaper nor the court has found out that the company is polluting the river. Discuss the extent of CA's responsibility in connection with disclosing to shareholders and society in general that the company is polluting the river. Your discussion may include any changes in CA's responsibility that you believe may, or should, be made in the future.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Question Posted: